Brands May Repel Shoppers With Social Commentary But Take A Bigger Risk Staying Silent, Study Says

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A recent study found that Nike's signing of Colin Kaepernick has helped its business despite threats of boycotts. (Photo credit: ANGELA WEISS/AFP/Getty Images)

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Should companies like Nike or Levi's take a stand on social issues even as they sell to consumers of different backgrounds and beliefs and may risk alienating those who don’t agree with their position? The answer is yes, according to a new study.

About 62% of consumers worldwide want companies to take a stand on the social, cultural, environmental and political issues that they care about, with nearly two-thirds saying their buying decisions are affected by the words, values or actions of companies’ leaders, according to a survey of nearly 30,000 consumers by Accenture Strategy.

In a sign that the issue is top of mind for global business leaders, this is the first time in Accenture’s 14th annual Global Consumer Pulse Research surveythat purpose-related questions were incorporated, an Accenture spokeswoman said, adding that the company's clients want to understand the link between profit and purpose and how brand positioning can make them more competitive.

Echoing other reports, the study, released Wednesday, found that the trend is being driven by millennials and Gen Z: 60% of the combined group, a key demographic target for brands, believe it’s important for companies to take a stand on issues including human rights, race relations or LGBT equality. That compares with 50% of Gen Xers and Baby Boomers, according to the study.

Companies are taking those cues to heart. Nike’s September signing of former San Francisco 49ers quarterback Colin Kaepernick to an endorsement contract, and its casting of Kaepernick for the 30th anniversary of its "Just Do It" Campaign, is one notable example, as is outdoor clothing retailer Patagonia’s October endorsement of two U.S. Senate candidates for the first time in its history. U.K. retailer John Lewis has reportedly removed boys' and girls' labels from its children’s clothing to be gender neutral while Swedish furniture seller IKEA has begun to employ Syrian refugees at its production facility in Jordan.

Back in the U.S., Levi’s president and CEO Chip Bergh has been outspoken against gun violence, among other issues, and has written an open letter asking gun owners not to bring firearms into the company's stores, offices or facilities.

“While not everyone agreed with our decision, we stood firm because we have never been afraid to take an unpopular stand to support a greater good,” Levi’s said in a company blog post.

Even though there’s no study quantifying the precise business impact from companies' taking a stand on controversial topics, some studies offer some proof that the pros of standing behind what a company believes in outweigh the potential risks of losing some shoppers.

For instance, although some consumers burned and threatened to boycott Nike products in protest of the company's signing of Kaepernick, online sales of Nike-branded items jumped 32%, 6.4 percentage points above the average industry growth rate, in the 27 days following the Kaepernick campaign in the apparel, shoes, accessories and sports and outdoors categories, according to a study of online receipts by Rakuten Intelligence, which has a panel of 5.5 million online U.S. shoppers. The study, released in November, found "politically conscious moves help brands increase sales." Younger and more affluent buyers support “socially conscious brands” and have “affinity” for brands like Nike and Patagonia, the study said.

For its part, Levi's in October reported its fourth consecutive quarter of double-digit revenue growth, which Bergh said at the time put it among the top performers in the industry.

“Companies that don’t step up pay the price,” said the Accenture study, titled "From Me to We: The Rise of the Purpose-led Brand."“Consumers who are disappointed with a brand’s words or actions on a social issue complain about it. That’s not surprising. What’s different now is that 47% walk away in frustration, with 17% not coming back. Ever.”